About the Course
Introduction
This course will provide tax advisers with a comprehensive guide to navigating the complex area of Social Security totalization agreements. The panel will detail how totalization transactions operate and what documentation is necessary to avoid dual Social Security contributions. The experts will also discuss the IRS initiative to require documentation from taxpayers claiming an exemption from Social Security coverage under a claim of a totalization agreement.
Description
An individual's liability for Social Security contributions is determined differently than the same person's income tax liability. Unlike U.S. income tax liability, which is based on citizenship or residence, social contributions are determined based on whether the individual's employment or self-employment is "covered" employment or self-employment. Likewise, as retirement benefits are determined based on an individual's entire working career, lapses in coverage can impact retirement benefits.
In addition, most countries require a minimum period of coverage in order to be eligible for retirement benefits. Individuals working in multiple jurisdictions and contributing to the Social Security system of multiple countries have the potential for the loss of benefits from those social tax withholdings. The U.S. and most other countries require individuals to pay in for a specified length of time before they are eligible for benefits. This can lead to an individual having social tax withheld for benefits that will never be received.
The U.S. has taken steps to address this problem in the form of "totalization agreements." These are treaty-force agreements that eliminate dual contributions and allow affected workers to receive a "totalized" benefit where workers are subject to social contributions outside their home country. Tax advisers must understand the relevant treaty rules and documentation requirements to assist their clients in claiming totalization agreement benefits.
Listen as our experienced panel provides comprehensive and practical guidance, detailing what tax advisers need to know to help their clients navigate the area of totalization agreements to avoid double taxation and protect Social Security and other social tax benefits.
Presented By
Mr. Jagust is a Partner in our Chicago Wealth and Human Capital Services Tax Business Line and specializes in Global Mobility Services. He has significant experience advising clients ranging from start-ups to large multinational companies on US tax, social security and mobility policy strategy for internationally mobile employees. Mr. Jagust also provides advice and guidance on assignment, tax and mobility policy, program management, international compensation and benefits and employment taxes issues. He has managed a wide range of assignee programs with a particular focus in implementing and improving mobility tax policies and processes focused on assignment initiation, mobility cost management, payroll and withholding, incentive compensation, and compensation collection. Mr. Jagust also supports companies assess global compliance and risks associated with internationally mobile employees, remote workers, and business travelers.
Mr. Kennedy has more than 42 years of experience dealing with a variety of international tax matters, specializing in tax consulting services to a wide variety of clients ranging from closely held companies to multi-national businesses. His expertise includes domestic and foreign income and social security tax planning, tax compliance for individuals and corporations, tax treatment of incentive compensation plans, international assignment program administration, and international assignment policy design. Mr. Kennedy has also served as the U.S. practice leader for international social security matters for a Big 4 accounting firm. He is a frequent speaker in the areas of international tax compliance and reporting obligations U.S. information reporting requirements for foreign assets and foreign entities, U.S. tax implications of foreign pension and social security plans, and U.S. income and social tax treaty planning. Mr. Kennedy is a member of the Texas Bar and is licensed as a certified accountant in Georgia and Texas. He has a B.A. from Furman University and a J.D. from Vanderbilt University School of Law.
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BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.
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BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).
Date + Time
- event
Wednesday, December 16, 2026
- schedule
1:00 PM ET/10:00 AM PT
I. Overview of U.S. Social Security contribution system
II. Structure of totalization agreements
III. Claiming and documenting the exemption
IV. "Detached worker" exception
V. Self-employed workers
VI. Traps for the unwary
The panel will review these and other vital issues:
- How do totalization agreements work?
- With which countries does the U.S. have existing totalization agreements?
- What documentation do the taxpayer and employer need to obtain, submit, and/or retain to support an exemption claim under totalization?
- How do the "detached worker" exception and the "five-year" rule operate?
- Calculating Social Security benefits under a totalization arrangement
Learning Objectives
After completing this course, you will be able to:
- Identify how totalization agreements apply and how the agreements operate as a means of claiming exemption from dual social tax liabilities
- Apply the "detached worker" exception to maintain home country coverage on short-term assignments
- Determine the mechanics of "totalizing" social benefits when taxpayers have paid into two different countries' social tax regimes
- Recognize scenarios where an employee may be exempt from Social Security withholding
- Field of Study: Taxes
- Level of Knowledge: Intermediate
- Advance Preparation: None
- Teaching Method: Seminar/Lecture
- Delivery Method: Group-Internet (via computer)
- Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
- Prerequisite: Three years+ business or public firm experience at mid-level within the organization with specific knowledge and understanding of Social Security, totalization agreements, U.S. workers receiving foreign-source wages, non-U.S. persons receiving wages from a U.S. company, detached worker rules; familiarity with required documentation for a Social Security tax exemption, dual taxation and employee and employer options regarding Social Security taxation.
BARBRI, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.
BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).
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